Price v. Hickory Point Bank & Trust

CourtAppellate Court of Illinois
DecidedJanuary 5, 2006
Docket4-05-0532 Rel
StatusPublished

This text of Price v. Hickory Point Bank & Trust (Price v. Hickory Point Bank & Trust) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Price v. Hickory Point Bank & Trust, (Ill. Ct. App. 2006).

Opinion

NO. 4-05-0532

IN THE APPELLATE COURT

OF ILLINOIS

FOURTH DISTRICT

MIKALA PRICE and MIKAL PRICE, ) Appeal from Minors, by DAVID MASSEY, Guardian ) Circuit Court of of the Estates of the Minors, ) Macon County Plaintiffs-Appellants, ) No. 04L29 v. ) HICKORY POINT BANK & TRUST, Trust ) No. 0192; MACON COUNTY TITLE, LLC; ) ANDREW CHILIGIRIS; and REAL ESTATE ) Honorable MANAGERS, LLC, ) Thomas E. Little, Defendants-Appellees. ) Judge Presiding. _________________________________________________________________

JUSTICE STEIGMANN delivered the opinion of the court:

In November 2004, plaintiff David Massey, as guardian

of the estate of plaintiffs, Mikala and Mikal Price (twins, born

in April 2000), filed a second-amended negligence complaint

against defendants, Hickory Point Bank & Trust, Trust No. 0192;

Macon County Title, LLC; Andrew Chiligiris; and Real Estate

Managers, LLC. Specifically, plaintiffs alleged that while Mikala

and Mikal were tenants in one of defendants' properties, they

were poisoned by exposure to lead-based paint. (Hickory Point

Bank & Trust, Trust No. 0192, was dismissed as a party early in

the proceedings.) Plaintiffs based their claim, in part, on

defendants' alleged violation of the Decatur Municipal Code and

certain regulations of the federal Environmental Protection

Agency that implement provisions of the federal Residential Lead-

Based Paint Hazard Reduction Act of 1992 (42 U.S.C. '4851

(2000)).

In December 2004 and February 2005, plaintiffs filed motions for partial summary judgment, through which they sought

findings on purportedly uncontested matters. In April 2005,

defendants filed a motion for summary judgment. In June 2005,

the trial court granted summary judgment in defendants' favor,

upon finding that (1) defendants had no knowledge that the

premises contained lead-based paint prior to learning of the

children's injuries, and (2) defendants did not knowingly violate

the regulations of the federal EPA.

Plaintiffs appeal, arguing that (1) the trial court erred by granting defendants' motion for summary judgment because

(a) a violation of law constitutes prima facie evidence of

negligence; and (b) the court improperly relied on an unpublished

Illinois Appellate Court decision; and (2) the court erred by

denying plaintiffs' partial-summary-judgment motions. We reverse

the court's grant of defendants' summary-judgment motion and

remand for further proceedings.

I. BACKGROUND

According to plaintiffs= second-amended complaint, in

July 2000, Mikal and Mikala's parents, Jenny and Michael Price,

entered into a lease with Chiligiris for a house at 2075 E.

William Street in Decatur and moved in. In November 2001, the

children's physician detected elevated levels of lead in their

blood. The physician notified the Macon County health department

and on December 6, 2001, the department conducted an investiga-

tion at the William Street residence. In January 2002, the

department issued a notice of its findings to the trust officer

- 2 - at Hickory Point Bank and Trust and sent a copy to Chiligiris.

Findings included that lead hazards were present on certain

windows, baseboards, and doorjambs. The department gave defen-

dants until February 9, 2002, to mitigate the lead hazards at the

residence.

Plaintiffs' second-amended complaint also alleged that

(1) defendants knew or should have known, based on Chiligiris's

years of experience with sale, management, renovation, repair,

and rental of residential real estate, of the hazard to children posed by lead-based paint; (2) defendants knew that children

would be residing at the William Street residence when the Price

family entered the lease; and (3) prior to purchasing the resi-

dence, Chiligiris was notified of the dangers of lead-based paint

and of the recommendation to conduct a risk assessment or inspec-

tion for lead-based paint prior to purchase or rental of the

property. The second-amended complaint further alleged that

defendants were negligent for (1) leasing the William Street

residence to the Price family with lead-based paint present in

the interior and exterior in violation of Decatur's Municipal

Code, which adopted the Building Officials and Code Administra-

tors' (BOCA) National Property Maintenance Code, 1993 edition

(specifically, sections 106.1, 303.4, and 305.4 of the BOCA

Code); (2) failing to notify the Price family of the presence of

lead-based paint at the residence; (3) failing to inspect the

residence for the presence of lead-based paint before renting it

- 3 - to the Price family; and (4) failing to disclose to the Price

family information about protection against lead-based paint, in

violation of federal law--namely, the Residential Lead-Based

Paint Hazard Reduction Act of 1992 (42 U.S.C. '4852(d) (2000))

and the federal Environmental Protection Act (EPA) regulations

implementing the Residential Lead-Based Paint Hazard Reduction

Act (40 C.F.R. '745.100-119 (2000)).

In December 2004, plaintiffs filed their first motion

for partial summary judgment. Plaintiffs sought a finding by the

trial court that defendants failed to warn the Price family about

the risks and dangers of lead-based paint in the William Street

residence. In February 2005, plaintiffs filed another motion for

partial summary judgment. In that motion, plaintiffs' sought a

finding that defendants had a duty to warn the Price family about

lead-based paint hazards when they entered the lease.

Following an April 2005 hearing, the trial court entered a docket

entry order in which it made the following findings:

"1. There is no evidence presently

before the court that the [d]efendants had

actual or constructive knowledge, prior to

the inception of the lease, that the leased

premises contained lead-based paint.

2. The affidavits of Jenny and Michael

Price suggest that they never received a

[l]ead-[p]aint [d]isclosure [f]orm from de-

fendants prior to the inception of the lease.

- 4 - 3. The federal statute and the federal

regulations suggest that a [l]essor shall

disclose to the [l]essee the presence of any

KNOWN lead-based paint and/or lead-based

paint hazards.

4. There remain genuine issues of mate-

rial fact."

The court denied both of plaintiffs= motions for partial summary

judgment.

Later in April 2005, defendants filed a motion for

summary judgment, asserting that they were entitled to judgment

as a matter of law, in pertinent part, because (1) plaintiffs

neither alleged facts nor developed any evidence that defendants

had actual or constructive notice of lead-based paint at the

William Street residence, and without such notice, defendants

could not be held liable; and (2) plaintiffs neither alleged

facts nor submitted any evidence to show that defendants know-

ingly violated the Residential Lead-Based Paint Hazard Reduction

Act, and absent evidence of a knowing violation, defendants had

no liability; and (3) defendants had no knowledge of the presence

of lead-based paint prior to receiving the mitigation notice

letter from the health department.

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